Please Vahid can you post an article about RSI and MACD divergence....

Thanks a lot,

Hi

I have already published an article about MACD and in that article MACD Divergence and Convergence are explained:
http://www.forexoma.com/how-to-use-macd ... k-trading/

I have not published any article about RSI but I will do it soon.

With my limited experience of analysing the Forex charts, it does appear the me that convergence/divergence of price and MACD is a much more powerful indicator with Forex than it is with the Stockmarket.
I have attached 2 Daily charts of the US indices that show how divergence can last for months with no decent break of support.
I would like to know from people more experienced than I am, has the MACD proved itself as a reliable indicator of trend reversals in the Forex market. It seems to have looking back at the charts, but that is not the same as using an indicator in real-time analysis.
Obviously, I realise that the MACD is only part of your analysis and may serve to make a trade set-up stronger in conjunction with other analysis.

Thanks

Keith

That's why I always take the divergence/convergence after a support/resistance breakout. You never know when and where a divergence/convergence shows its effect on the market.

Vahid

Is this still considered a convergence? The reason I ask is because MACD went above zero and now is below zero and showing a convergence but I am wondering if all bets are off since it has broken the zero level. Thanks

For me, Divergence takes quite long to form. Meaning it needs to be bullish or bearish for a long time, then you will notice a getting weak bullish and getting weak bearish for an entry. Doesn't quite like RSI and MACD.

I am using bollinger divergence, it's the breaking divergence. Since most of the day trend, it tends to break the bollinger. Let's see how it works. I'm putting Feb 18 - Feb 19, the most recent one for your reference, EUR/CAD M30.

Just for your note. Trade only appears double head at top and double head at bottom. The rest need to ignore, just like MACD divergence doesn't appear everytime. Sorry to Vahid for changing the topic.

Hi Bill,

Yes, this can still be considered as a convergence. The only problem is that the two lows are a little far from each other. They need to be a little closer.

It is ok. Feel free to post your comments